The Office of the Comptroller of the Currency (OCC) announced it was preparing to launch options trading on the Bitcoin ETF, two days after CFTC approval. These trades should go live in the next day or two.
The SEC first gave its own approval in September, but these developments clear all remaining regulatory hurdles.
Bitcoin Spot ETF Options Trading
According to ETF Analyst Eric Balchunas, the OCC hasn’t confirmed the exact launch date for Bitcoin ETF options, but it’s now a matter of when not if. Following this statement, Alison Hennessy, NASDAQ’s Head of ETP Listings, stated that this development will happen soon, potentially this week.
“NASDAQ is ready to go, IBIT options will list as soon as tomorrow,” said Hennessy, per a quoteation from Bloomberg ETF analyst Eric Balchunas.
The OCC and CFTC are two critically important pieces in the approval process for ETF options trading. The first step in this process took place in September when the SEC gave it the green light. However, although the SEC could independently authorize the original Bitcoin ETFs, options trading requires further consensus.
Nonetheless, the SEC was considered the most difficult step, considering Chair Gary Gensler’s tactic of repeatedly delaying a firm decision. Once the SEC approved these options listings, it is unclear why the CFTC delayed nearly two months before issuing its own approval. After this, however, the OCC was ready to implement it quickly.
Balchunas claimed this was the normal pattern for these agencies, as “the listing process after OCC approval is considered relatively quick, often happening within a few days.” Still, this does not guarantee that relevant markets will match this speed.
As previously reported by BeInCrypto, on-chain analytics recently called ETF Options Trading a “significant milestone” for Bitcoin adoption. The initial wave of Bitcoin ETFs signaled institutional acceptance and brought new investors.
Options trading, however, would turbocharge this existing trend. New investment types and institutional revenue streams will boost market liquidity, making the Bitcoin market more accessible to institutional entities.
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